As former President Donald Trump gears up to unveil his economic plans, Vice President Kamala Harris' campaign is raising concerns about the potential impact on the American economy. A memo from a top economic adviser to Harris suggests that Trump's proposals could cost 'trillions' of dollars and disproportionately affect the middle class. The memo argues that Trump's policies would primarily benefit billionaires and large corporations, leading to significant tax breaks for the wealthy.
During his first term, Trump lowered the corporate tax rate to 21% and has promised further cuts for businesses if re-elected. He has also proposed eliminating taxes on tipped wages and implementing broad tariffs across the economy to generate revenue for these tax cuts and promote domestic investments.
However, experts, including former US Department of the Treasury official Nelson, have cautioned that Trump's approach may backfire and trigger a trade war that could stall economic growth. Many economists warn that a substantial increase in tariffs could harm consumers by driving up prices on goods and potentially leading to job losses.
The campaign memo accuses Trump of disregarding bipartisan consensus and misleading the public about the true costs and consequences of his economic agenda. Despite warnings from experts, Trump appears determined to push forward with his plans, which he will discuss at the Economic Club of New York following Harris' recent unveiling of her economic proposals.
